This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

LCA-Vision CEO Discusses Q3 2010 Results - Earnings Call Transcript

Now, I’d like to turn the call over to Mike Celebrezze. Mike?

Michael Celebrezze

Thanks Jody. Good morning everyone and thank you for joining us. Demand for laser vision correction surgery has historically been soft during the third quarter due to summer holidays and vacations. This year our Q3 procedure volume also was adversely affected by a decline in consumer confidence which reached its lowest level since the second quarter of 2009.

Although the economic environment continues to be highly challenging, we are benefiting from sustained improvements in our ability to divert pre-operative scheduled appointments to completed procedures. Dave Thomas will provide more details on these improvements in a few minutes. We continued to take numerous actions under our company wide priorities of cash conservation, patient acquisition and retention and organizational effectiveness.

This includes evaluating all aspects of our operations with the objective of managing our business effectively while providing a highest level of patient care and customer service. At the Vision Center level, this translates into balancing operating costs and revenue generation. To ongoing evaluation, we reached the decision to consolidate operations in Atlanta, Chicago, Dallas Fort Worth and Houston by closing one of multiple centers in each of those markets.

We are closing Vision Centers in San Diego, Fort Lauderdale, Long Island and Rally. Seven of these Vision Center closures are expected to be completed by mid December and we expect to take a related charge in the fourth quarter of $4.3 million. The charge is comprised primarily of recording 100% of the future rent obligations from the closing centers and severance costs.

It is possible that the charge will be reduced if we’re successful in negotiating lease buyouts or sub-leases. The eighth center will close when the lease expires in April 2011. With these closings, we expect to have sufficient cash and investments to fund our business beyond 2012 if we perform at least 52,000 procedures annually.

Now I’d like to review our 2010 third quarter financial results. As in the past, we are providing both GAAP and adjusted revenues and operating loss as a means of measuring our performance. The adjusted results account for the non-cash impact of the accounting for separately priced extended warranties. A reconciliation of revenues and operating loss as reported in accordance with GAAP is provided at the end of the news release we issued this morning.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs